There is new terminology used today, sometimes abused, sometimes mis-used.The term “
”, for instance, has become very fashionable. Airlines use it, InsuranceCompanies use it, Car Manufacturers use it… in fact it is widely used.To indicate what?To indicate a “standard”, a “level” which seem to be the
best under the circumstances
.So there are world-class enterprises, world-class services, world-class products…Meaning: that enterprise, that service, that product, is of “world-class” calibre, or “of a standardcomparable to that of the best in the classroom” where the classroom is the entire world.So, the term “world-class” has silently become a sort of unit of measure, a non-always-clearly-defined way of attaching a label (a good label) to something, be it a enterprise, a product, or whatever.Well, we shall go along with this fashion, obviously taking a note that a better definition might begiven. And state that,
today’s enterprises need to operate and perform in an adequate manner, following a “newmodel” – and, according to our knowledge of today, it would appear that the most fit model isthat adopted by enterprises which consistently distinguish themselves for their overallperformance - and as such it is a valid model, a model to be followed
Like to say that: being unable to arrive at a theoretical model that could be valid for all enterprisesof the new world, the best we can do is to look at excellent enterprises (those that are called“world-class” enterprises) and take hints from them in order to achieve a satisfactory or excellentlevel of performance in other enterprises.Nothing wrong with this: all we are doing is adopting a “relative” approach, and trying to takeexamples from the best in the wider classroom: the world.Having said that, we shall have to define another term in larger detail, the term “
”.Well, there is this entire course for that but still we have to understand each other (and the sooner the better) on the meaning of “performance”.So what do we mean by “enterprise’s performance”?Preliminarily we can say that performance means the overall “show” of an enterprise. Like at aconcert, or at a movie, we spectators face one or more performers (soloists, conductor, actors,director…..).
The essential toolbox for Performance Measurement & Monitoring in the SME